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Posts on ‘April 8th, 2015’

Shell-BG Deal Puts Pressure on Big Oil to Consolidate Again

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Screen Shot 2015-04-08 at 08.12.04Article by Javier Blas12:47 PM BST April 8, 2015 published by Bloomberg.com

In the words of Royal Dutch Shell Plc’s boss, the fundamental logic behind his decision to buy BG Group Plc “always existed.”

What pushed the $70 billion deal over the finish line was that it had become “very compelling from a value perspective” after oil prices fell by half to $50 a barrel.

Ben van Beurden is unlikely to be alone among the chief executive officers of the world’s largest oil companies in thinking that valuations are looking very persuasive.

Just as the first deal between BP Plc and Amoco Corp. during a previous oil price slump in 1998 triggered a wave of deals, the Shell-BG merger is likely to push big oil to consolidate again. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell Will Buy BG for $70 Billion in Push for Gas Dominance

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Screen Shot 2015-04-08 at 08.12.04by Javier BlasRakteem Katakey for Bloomberg.com

Royal Dutch Shell Plc agreed to buy BG Group Plc for about 47 billion pounds ($70 billion), making Europe’s largest oil company the pre-eminent player in global natural gas and adding fields in Brazil.

The deal, the industry’s biggest in at least a decade, will push Shell further into producing, shipping and selling gas as the company bets China and other emerging economies switch from coal and oil to cut pollution.

Investors were skeptical of the stock and cash acquisition, which isn’t expected to boost earnings per share until 2017. The price of the class of share being used to buy BG fell the most since 2008 on concern the company is overpaying. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell, With $70B Deal For BG Group, Becomes World LNG Giant

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Screen Shot 2015-04-08 at 08.12.04Christopher Helman

So this is how the consolidation starts. Royal Dutch Shell is making a smart move in its $70 billion acquisition of BG Group . The deal will gain Shell access to the most exciting deepwater oil projects in the world, in Brazil. While adding in BG Group’s fast-growing liquefied natural gas business will soon make Shell the undisputed world leader in LNG. The combination will set Shell on the path to unseat Exxon Mobil XOM -1.95% as the world’s biggest oil company — at least until the next big acquisition is revealed. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell’s $70 Billion Takeover Could Herald Wave of Mergers

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Ben van Beurden, CEO of Royal Dutch Shell, left, shakes hands with the Chairman of BG Group Andrew Gould during a press conference to announce Royal Dutch Shell has agreed to buy British Gas, in London on Wednesday. 

Associated Press Article 8 April 2015

READ THE ARTICLE HERE

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

The M&A wave from the Shell-BG deal may not be the one you expect

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BY Geoffrey Smith: 8 April 2015

Screen Shot 2015-04-08 at 19.15.19

Screen Shot 2015-04-08 at 08.12.04Consolidation in the U.S. shale sector is being held up by desperate hopes for a turnaround in prices, and the continued flow of free money from the Fed.

When a commodity price collapses, it’s only natural to see a shakeout among the companies that produce it. The weak go the wall and the strong salvage from the wreckage what they think will make them stronger.

Only, oil often doesn’t play by those rules, particularly outside the U.S.. Many of the world’s biggest companies are either entirely state-owned, or are sufficiently under the control of their respective governments as to thwart the process of natural selection. That’s why most of Europe’s big oil and gas national champions — France’s Total SA STOHF 0.49% , Eni SpA EIPAF 1.57% and Spain’s Repsol SA REPYY -0.84% — have all been left cold by the news of Royal Dutch Shell’s RDSAF $70 billion merger with BG Group BRGYY 26.72% . read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

5 things to know about the biggest energy deal in a decade

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Fortune Magazine article by Geoffrey Smith published 8 April 2015

5 things to know about the biggest energy deal in a decade

Royal Dutch Shell Plc RDSAF is taking over BG Group Plc BRGYY 26.58% in a $70 billion deal, the biggest the energy industry has seen in over a decade, and the clearest sign yet of consolidation pressures caused by last year’s collapse in oil prices. Here’s what you need to know.

1. It’s a landmark moment for the sector. Big mergers in the energy industry typically happen when it becomes cheaper to buy oil and gas reserves on the stock market than to drill for them. BG’s shares had fallen over 50% since January last year, and there was no way Shell could develop a comparable portfolio of assets organically for less than what it’s paying for BG today. Even if the number of potential candidates for such deals is smaller than it was 15 years ago, the same logic will surely apply to some other oil and gas companies out there. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell Gas Leak

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By John Donovan

Yesterday lunchtime, I got a whiff of what I now know to be the Shell takeover of BG Group. 

The information was unclear and my Shell related source made it plain that it was a rumour emanating from a third party, but one with “good ears” and miscellaneous contacts. 

The main thrust of the rumour was of a pending deal involving Shell and gas.

I should have connected the dots.

The information was leaked simultaneously to me and a journalist at a national newspaper.  read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

BG Group shares are going through the roof after a colossal merger with Shell

Screen Shot 2015-04-08 at 08.12.04Article by MIKE BIRD published 8 April 2015 by UKBusinessInsider.com

BG Group shares are going through the roof after a colossal merger with Shell

Shares in BG Group are rocketing upwards after the company agreed to a merger with oil giant Shell. The tie-up will create a company worth £224 billion.

As of 10:20 a.m. London time (5:20 a.m. ET) London-listed BG Group’s shares are up 36.95%, climbing to levels last seen in the summer, before falling oil prices took their toll.

Here’s how it looks:

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The share price climbed about 6% yesterday too, and the company’s shares surged from about 852 pence just before Easter to nearly 1,250 pence now. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell and BG Group agree to create a £224 billion super group

Screen Shot 2015-04-08 at 08.12.04Article by LIANNA BRINDED published 8 April 2015 by UKBusinessInsider.com

Shell and BG Group agree to create a £224 billion super group

Shell and BG Group will create an oil super merger after both parties agreed on a new deal.

Shell, worth £136 billion ($202 million), revealed in a regulatory announcement on the London Stock Exchange that it has valued BG Group at £47 billion.

If the offered deal goes through, it will create a super group worth £224 billion in combined value.

Under the terms of the deal, BG shareholders will be entitled to

receive 383 pence in cash for each BG share and 0.4454 Shell B shares for each BG share.

BG shareholders will end up owning 19% of the new combined group.

“Bold, strategic moves shape our industry. BG and Shell are a great fit. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Buying BG Would Give Shell Answer to Stranded Australian Gas

Article by James Paton published 8 April 2015 by Bloomberg

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Screen Shot 2015-04-08 at 08.12.04Royal Dutch Shell Plc is seeking an outlet for its natural gas reserves in Australia’s Queensland state. The proposed acquisition of BG Group Plc could provide one.

If Shell buys BG, the combined company would surpass Chevron Corp. as the world’s second-largest oil and gas producer. It would also streamline the energy industry in Australia, which is on the path to becoming the world’s biggest liquefied natural gas exporter later this decade, and may prompt other acquisitions in the sector. read more

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Shell Subsidiaries Want Oil Price-Rigging Suit Dumped

Screen Shot 2015-01-06 at 21.26.38From an article by Aaron Vehling published 7 April 2015 by LAW360.com

Shell Subsidiaries Want Oil Price-Rigging Suit Dumped

Law360, New York (April 07, 2015, 6:31 PM ET) — Two Royal Dutch Shell PLC affiliates on Tuesday urged a New York federal court to dismiss them from a multidistrict litigation accusing them of manipulating crude oil futures, arguing that the plaintiffs haven’t alleged facts to justify the affiliates being named in the suit.

Shell Trading (US) Co. and Shell International Trading and Shipping Co. Ltd., which replaced Royal Dutch Shell in the suit after the plaintiffs filed their second amended complaint in February, urged the court to dismiss claims accusing them of participating in a… read more

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Shell to Buy BG Group for $69.6 Billion

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Deal the latest sign of how tumbling energy prices are shaking up the global oil-and-gas industry

WALL STREET JOURNAL ARTICLE BY SELINA WILLIAMS and IAN WALKER

By SELINA WILLIAMS and IAN WALKER

Updated April 8, 2015 3:19 a.m. ET

LONDON—Petroleum giant Royal Dutch Shell PLC has agreed to buy BG Group PLC for £47 billion ($69.6 billion) in cash and shares, the latest sign of how tumbling energy prices are shaking up the global oil-and-gas industry.

BG shareholders will get 383 pence in cash; and 0.4454 Shell B shares for each share held, giving them 19% of the enlarged group, which will be one of the world’s leading liquefied natural gas firms. The price is a 50% premium to BG’s closing share price of 910.4 pence on Tuesday. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell sues to boot Greenpeace activists who climbed aboard oil rig bound for the Arctic to protest drilling

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Shell sues to boot Greenpeace activists who climbed aboard oil rig bound for the Arctic to protest drilling

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Shell has filed a complaint in federal court in Alaska seeking an order to remove Greenpeace activists who climbed aboard an oil rig in the Pacific

The environmental group said in a statement its team would occupy the underside of the main deck of the Polar Pioneer

The six activists are camping on the 38,000-tonne Polar Pioneer platform, which they boarded using inflatable boats from the Greenpeace vessel ‘Esperanza’

‘We made it! We’re on Shell’s platform. And we’re not alone. Everyone can help turn this into a platform for people power!’ tweeted Aliyah Field read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell seeking to buy BG in first oil super-merger in over a decade

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Screen Shot 2015-04-08 at 08.12.04The collapse in global oil prices has sparked much speculation about mergers in the industry and BG has often been cited as a potential target.

(Reuters) – Royal Dutch Shell (RDSa.L) is in advanced talks to buy BG Group (BG.L) in the first oil super-merger in more than a decade, seeking to extend its lead in gas production and close the gap with the world’s biggest oil major, U.S. ExxonMobil (XOM.N).

BG, which has a market value of $46 billion, said in a statement on Tuesday it was in advanced discussions regarding a possible offer by Shell, whose market capitalisation is $202 billion. Exxon is worth $360 billion.

A successful deal would give Shell access to BG’s multi-billion dollar projects in Brazil, East Africa, Australia, Kazakhstan and Egypt, including some of the world’s most ambitious liquefied natural gas (LNG) projects. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell-BG: more details of the deal

Screen Shot 2015-04-08 at 08.12.04FT: Shell-BG: more details of the deal

8 April 2015

Following the momentous news that Royal Dutch Shell is buying BG Group for £47bn, here are some more details for investors to chew over, including a promise of a big premium, enhanced dividends and a share buyback.

Financial details of the offer:

  • The deal, which gives BG investors 383p in cash and 0.4454 Shell B shares is based on a 90 day trading day volume weighted average price of 2,170.3p per Shell B Share on 7 April 2015.
  • This, Shell says, gives a value of approximately 1,350p per BG Share.
  • The 1,350p is a premium of approximately 52 per cent to the 90 trading day volume weighted average price of 890.4 pence per BG Share on 7 April 2015.

Why is it happening?

Shell believes there are major benefits to be had in taking on BG’s reserves and projects (in a market where low oil prices have made it unprofitable to develop new projects from scratch). From Shell’s statement: read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Royal Dutch Shell in Talks for BG Group, a Gas Producer

Screen Shot 2015-04-08 at 08.12.04Article by STANLEY REED and MICHAEL J. de la MERCED PUBLISHED APRIL 8, 2015 BY THE NEW YORK TIMES

Royal Dutch Shell in Talks for BG Group, a Gas Producer

“That calculus could change if Shell and BG merge. A deal of this size could inspire some wavering would-be sellers to pursue deals. Advisers say that they expect mergers activity to pick up this year, mostly once oil prices show more signs of stability.”

LONDON — The British oil and gas producer BG Group said on Tuesday that it was in advanced discussions with Royal Dutch Shell over a potential sale. A deal could top $50 billion.

BG Group added that there could be no certainty that an offer would ultimately be made by Shell.

Still, two people briefed on the matter said that an agreement could be announced soon. A Shell spokesman, Andy Norman, declined to comment.

BG has a market value of $46 billion. Its shares rose about 6.7 percent in London trading on Tuesday. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell launches agreed £47bn bid for UK gas producer BG Group

Screen Shot 2015-04-08 at 08.12.04Guardian article by Julia Finch published 7 April 2015

Shell launches agreed £47bn bid for UK gas producer BG Group

BG confirmed on Wednesday that it was offering a cash and shares deal worth £13.67 a share – a 50% premium on BG’s market value on Tuesday night, when news of the deal first leaked.

Ben van Beurden, chief executive of Shell, said: “Bold, strategic moves shape our industry. BG and Shell are a great fit. This transaction fits with our strategy and our read on the industry landscape around us.”

Shell chairman, Jorma Ollila, said the deal was an important one for Shell: “The result will be a more competitive, stronger company for both sets of shareholders in today’s volatile oil price world.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com
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